Complaints
This profile includes complaints for Principal Financial Group's headquarters and its corporate-owned locations. To view all corporate locations, see
Customer Complaints Summary
- 317 total complaints in the last 3 years.
- 89 complaints closed in the last 12 months.
If you've experienced an issue
Submit a ComplaintThe complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.
Initial Complaint
Date:05/28/2024
Type:Status:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
My previous company used Principal for our 401k. When I left the company, I wanted to move my funds. When I spoke with Principal they stated I could move the funds into my personal *************** account. I completed the necessary paperwork, and thought the transfer would be completed. Fast forward 4 months. I get a check from my bank (from Principal) stating that the funds could not be transferred to my account and that they would need to be transferred to a qualifying 401k account. I contacted ******************** on August 3rd 2023. The gentleman I spoke with ****, stated that this was correct and he could easily terminate the previous transaction and reissue the funds to a qualifying 401k. Paperwork was completed, and the funds were transferred the next day. When I received my 1099-R tax form, it showed incorrect information, that demonstrates the funds went into a non-qualifying plan, and huge tax penalties would be assessed. I have contacted Prinicpal numerous times, to get a corrected 1099-R. They are stating they do not have any documentation from their own employee ****, to determine if this is accurate. I forwarded them the email from him, confirming the update to the fund transfer. They still state they do not have anything. **** is no longer an employee there, and there is nothing they are willing to do on their end to correct their error.
Business Response
Date: 05/28/2024
Thank you for forwarding. Principal will respond directly to the complainant.Initial Complaint
Date:05/24/2024
Type:Status:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Requested a withdrawal from my 401k after separating with my employer on 5/10/24 the period before processing is stated to take 10 days. They claim to be waiting on my date of separation from my employer which again was the same day as the request and deposits are no longer being made into the account. Ive just been trying to see what the hold up is on the process and every time I contact customer service nobody can give me a transparent answer. At this point it just feels like theyre holding my money. I would appreciate them to contact me with a resolution and not the run around that Ive been getting.Business Response
Date: 05/24/2024
Thank you for forwarding. Principal will respond directly to the complainant.Customer Answer
Date: 05/24/2024
Complaint: 21755009
I am rejecting this response because: The resolution im seeking is the distribution of my funds. Somebody reached out but no solution is actively being worked on. All the information I received is that theyre waiting on a response from my employer. Verifying a date of separation should be as easy as making a phone call to the hr department
Sincerely,
*******************************Business Response
Date: 06/26/2024
Thank you for forwarding. Principal has reached out directly to the complainantInitial Complaint
Date:05/22/2024
Type:Status:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
Cannot get principal to pay my 401k after over a month.First due to former employer not updating my employment status even though I provided proof that I was not receiving any money from them.Waited 3 weeks and nothing so I gave them the contact details for my former employer who updated the status and principal told me they would not contact them.Have waited over a month now for my money and now principal will not return calls or emails.And when I talk to them if they do answer the response is waiting on former employer.Its been done now for a couple weeks but principal refuses to contact them or reach out in any way even after I gave them all the information needed to resolve this.They are causing me extreme financial distress and they are not helping in any way whatsoever.Business Response
Date: 05/28/2024
Thank you for forwarding. Principal will respond directly to the complainant.Initial Complaint
Date:05/20/2024
Type:Status:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
My mother has dementia and lives in a memory care facility. Prior to her illness she granted me power of attorney. I have been trying for one month on her behalf to get access to her 401k account at ********************** in order to pay for her care and to take her required minimum annual distribution for 2024. I have called the ************************** at Principal many times. I have forwarded them the requested ***** of ******** documents. They have received the documentation but state that they are waiting for the "employer to also approve the documents." My mom's employer was Securian Financial Group (when it was called Minnesota Mutual.) When I reach out directly to ********, they state that the plan has been fully transferred to Principal, and they don't keep records of previous employees. ******** did, however, transfer her group *** funds to her checking account promptly upon request. (Securian is not the problem here!) A ************************** manager at Principal told me that it "could take forever, theoretically" for them to hear back from "the employer" (i.e., Securian), as to the approval and subsequent account access. Their only mode of contact with Securian has been email. MY MOM DOESN'T HAVE "FOREVER"!! None of us do. This is pure theft on Principal's part. All 401k plans, including my mom's, transferred from Securian to Principal on January 12, 2024. Principal hasn't so much as even sent her an account statement since then. They are criminally hanging on to her assets as far as I am concerned.Business Response
Date: 05/20/2024
Thank you for forwarding. Principal will respond directly to the complainant.Initial Complaint
Date:05/16/2024
Type:Status:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
The previous company I was working with had a 401k and when they got bought out all of my retirement fund got transferred from **** ******* to Principal. The entire experience has been a nightmare. Their staff does not seem to know what they are doing. Every conversation feels like the first time and they have no idea what they are talking about, what any of the processes are, what any of the forms mean, how to fill them out, or really anything. They barely speak english they don't understand the questions I am asking they repeat themselves even when it doesn't make sense. They will say they have processed paperwork or a wire transfer and then nothing happens. When you call back you start at step 1 all over again.Business Response
Date: 05/16/2024
Thank you for forwarding. Principal will respond directly to the complainant.Customer Answer
Date: 05/16/2024
Better Business Bureau:
I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
Sincerely,
*****************************Initial Complaint
Date:05/06/2024
Type:Status:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
I'm trying to do a hardship withdrawal out of my 401k I've sent them the itemized bills and they are still saying I haven't they were faxed to them on 5/2/24 . They have been giving me problems about taking out money for the last 3 weeks and I am not the only one. I contacted an attorney for advice and they are in the wrong. I want to take all my money out and be done with them. They have told me nothing but lies when contacted. I have bills that need to be paid and I cant pay them because they are withholding my money.Business Response
Date: 05/06/2024
Thank you for forwarding. Principal will respond directly to the complainant.Initial Complaint
Date:04/30/2024
Type:Status:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
I changed jobs and rolled my 401K to a different company and I was told by Principal that I had a little over ***** in a *************** and I would be receiving the entire amount in 3-5 days. When I had not received the money I called them again, then I spoke with a supervisor and was told that they used a little over ***** to pay taxes on an outstanding loan. Then today I called them to find out why I had not received the remaining balance and they told me I would not be receiving any money that I paid in.Business Response
Date: 04/30/2024
Thank you for forwarding. Principal will respond directly to the complainant.Initial Complaint
Date:04/30/2024
Type:Status:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
During my wife's ( ***********************) open enrolment, she elected for short-term disability to cover 60% of her salary during the time she will be off due to childbirth. The decision to obtain short-term disability was based on the advice from her healthcare provider after her first pregnancy doctor's ************ Hence starting 1/1/24, she was covered by short-term disability and made bi-weekly contributions for this benefit.Now that it is time to file for short-term disability, Principal is telling us that she is not eligible because her pregnancy is seen as a pre-existing condition. Looking at the information provided by Principal prior to signing up for this benefit, there is no information showing that the pregnancy is a pre-existing condition. We would like to request that she be given the full or partial amount of the short-term disability policy as advertised in her enrolment packet.Business Response
Date: 05/01/2024
This is a response to complaint ID #********. *************************** takes our responsibility to protect our customers confidentiality very seriously. Therefore, we will respond to the claimant directly. Please let me know if you have further questions.
Customer Answer
Date: 05/13/2024
Complaint: 21643893
I am rejecting this response because:1. After 10 business days from filling of this complaint, we still have not received any correspondence from Principal regarding the resolution of this complaint.
2. We are not comfortable closing the complaint unless we have some evidence that Principal is taking action to resolve this complaint.
Sincerely,
*************************Business Response
Date: 05/15/2024
I am in receipt of the attached follow up. I was out of the office last week and a response to the complaint was mailed to the claimant today. They are disputing the denial of their STD claim. We have provided them with instructions to submit an appeal if they do not agree with that decision.
Initial Complaint
Date:04/29/2024
Type:Status:AnsweredMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
I took a withdrawal from 401k last year. Principal provided me with a 1099R in January which we used to file our taxes. Our return has been held since February because they never filed the 1099 with the **** I am now facing financial distress because of this. I called Principal and they said they filed an extension and will not send their part to the *** until 4/30. The representative's response of "oh you were flagged, we hope that that doesnt happen" but no resolution. I want this resolved as I was sent a fraudulent 1099R and am being penalized for Principal's poor business practices.Business Response
Date: 04/29/2024
Thank you for forwarding. Principal will respond directly to the complainant.Customer Answer
Date: 05/08/2024
Complaint: 21632971
I am rejecting this response because: They called me back while I was at work and left a message to return their call. I have left two messages after leaving work, within their given office hours, with no response.
Sincerely,
*********************Business Response
Date: 06/26/2024
Thank you for forwarding. Principal has responded directly to the complainant.Initial Complaint
Date:04/19/2024
Type:Status:ResolvedMore info
Complaint statuses
- Resolved:
- The complainant verified the issue was resolved to their satisfaction.
- Unresolved:
- The business responded to the dispute but failed to make a good faith effort to resolve it.
- Answered:
- The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.
- Unanswered:
- The business failed to respond to the dispute.
- Unpursuable:
- BBB is unable to locate the business.
I have a retirement account with this company and have sent in notarized wife's signature, I did this on 4/5/24 by ***** and have not heard anything, this is my money in a retirement account and I can't seem to withdraw my own money from my own account. I'm retired and need the money and can't get it.........this is a bad system........Business Response
Date: 04/19/2024
Thank you for forwarding. Principal will respond directly to the complainant.
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